Disclaimer: This article is for informational purposes only and does not constitute financial advice.
Investment Thesis and Target Price
Kyobo Securities has maintained an Investment Rating of Buy and a Target Price of 500,000 KRW (~$349.65 USD based on 1430 KRW/USD) for Samsung Electronics. The brokerage argues that the visibility of the memory industry is expanding, suggesting that current record-breaking results are not a one-time peak. Key valuation drivers include long lead times for new supply, five-year Long-Term Agreements (LTAs) with global data center customers, a rapidly increasing revenue share of High Bandwidth Memory (HBM), and improvements in yield and utilization rates for advanced foundry processes.
Earnings Estimates and Financial Preview
Samsung Electronics reported record-breaking consolidated results for 2Q26, with revenue of 171.5 trillion KRW (~$119.9B USD), up 28% QoQ and 130% YoY. Operating profit reached 89.5 trillion KRW (~$62.6B USD), representing a 56% increase QoQ and a 1,812% increase YoY, resulting in an operating margin of 52.1%. The DS (Device Solutions) division led the performance with revenue of 127.5 trillion KRW (~$89.2B USD) and operating profit of 89.2 trillion KRW (~$62.4B USD). In contrast, the DX division recorded revenue of 48.0 trillion KRW (~$33.6B USD) and an operating loss of 0.8 trillion KRW (~$559.4M USD) due to rising component costs. SDC and Harman recorded operating profits of 0.7 trillion KRW (~$489.5M USD) and 0.4 trillion KRW (~$279.7M USD), respectively.
Key Semiconductor Drivers and Outlook
The performance was primarily driven by the DS division, specifically memory revenue which grew 62% QoQ to 120.8 trillion KRW (~$84.5B USD). The company achieved record bit shipments for both DRAM and NAND Flash by aggressively meeting AI server demand. Key drivers included an increased revenue share from servers, rising market prices, and increased supply of High Bandwidth Memory (HBM4). Estimated growth metrics include DRAM: B/G +8%, ASP +49% (YoY +370%), and NAND Flash: B/G +3%, ASP +58% (YoY +323%). The brokerage notes that the simultaneous occurrence of HBM4 market share expansion and conventional DRAM supply shortages will enhance profit sustainability compared to previous memory cycles.
🔗 Original Source: View the official filing/article here.